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Constraint Management

Chapter 7
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 01
What is a Constraint?
Constraint
Any factor that limits the
performance of a system
and restricts its output.

Bottleneck
A capacity constraint
resource whose available
capacity limits the
organizations ability to
meet the product volume or
mix, or demand
fluctuations.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 02
Theory of Constraints
1.Identify the System Bottleneck(s)

2.Exploit the Bottleneck(s)

3.Subordinate All Other Decisions to Step 2

4.Elevate the Bottleneck(s)

5.Do Not Let Inertia Set In


Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07 - 03
Theory of Constraints and
Financial Measures

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Key Principles of the TOC
The focus should be on balancing flow, not on
balancing capacity.
Maximizing the output and efficiency of every
resource may not maximize the throughput of the
entire system.
An hour lost at a bottleneck or constrained resource is
an hour lost for the whole system.
An hour saved does not make the system more productive.
Inventory is only needed in front of bottlenecks and
in front of assembly and shipping points.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07 - 05
Key Principles of the TOC
Work should be released into the system only as
frequently as needed by the bottlenecks.
Bottleneck flows = market demand
Activating a nonbottleneck resources is not the
same as utilizing a bottleneck.
It doesnt increase throughput or promote better
performance.
Every capital investment must be viewed from the
perspective of the global impact on throughput,
inventory and operating expense.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07 - 06
Identifying the Bottleneck
Example 7.1
Managers at the First Community Bank are attempting to
shorten the time it takes customers with approved loan
applications to get their paperwork processed. The flowchart
for this process is shown in the next slide.
Approved loan applications first arrive at activity or step 1,
where they are checked for completeness and put in order.
At step 2, the loans are categorized into different classes
according to the loan amount and whether they are being
requested for personal or commercial reasons.
While credit checking commences at step 3, loan application
data are entered in parallel into the information system for
record-keeping purposes at step 4.
Finally, all paperwork for setting up the new loan is finished at
step 5. The time taken in minutes is given in parentheses.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07 - 07
Identifying the Bottleneck
Example 7.1

Which single step is the bottleneck? The management is also


interested in knowing the maximum number of approved
loans this system can process in a 5-hour work day.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 08
Example 7.1
We define the bottleneck as step 2, which has the highest
time per loan processed.
The throughput time to complete an approved loan
application is 15 + 20 + max(15, 12) + 10 = 60 minutes.
The actual time taken for completing an approved loan will
be longer than 60 minutes due to nonuniform arrival of
applications, variations in actual processing times, and the
related factors.
The capacity for loan completions is derived by translating
the minutes per customer at the bottleneck step to
customer per hour. At First Community Bank, it is 3
customers per hour because the bottleneck step 2 can
process only 1 customer every 20 minutes (60/3).
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07 - 09
Application Problem 7.1
Two types of customers enter Barbaras Boutique shop for
customized dress alterations. After T1, Type A customers
proceed to step T2 and then to any of the three workstations
at T3, followed by steps T4 and T7. After step T1,Type B
customers proceed to step T5 and then steps T6 and T7. The
numbers in the parentheses are the minutes it takes that
activity to process a customer.
a. What is the capacity per hour of Type A customers?
b. If 30 percent of the customers are Type A customers and 70
percent are Type B customers, what is the average capacity?
c. When would Type A customers experience waiting lines,
assuming there are no Type B customers in the shop? Where
would Type B customers have to wait, assuming no Type A
customers?
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Application 7.1
T3-a
(14)

T2 T3-b T4
(13) (10) (18)
Type A

T1 Type T3-c T7
(12) A or B? (11) (10)

Type B
T5 T6
(15) (22)
a. For Type A customers
Step T2 can process (60/13) = 4.62 customers per hour.
Step T3 has three work stations and a capacity of (60/14) +
(60/10) + (60/11) = 15.74 customer per hour.
Step T4 can process (60/18) = 3.33 customers per hour.
The bottleneck for type A customers is T4.
07- 11
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Application 7.1
T3-a
(14)

T2 T3-b T4
(13) (10) (18)
Type A

T1 Type T3-c T7
(12) A or B? (11) (10)

Type B
T5 T6
(15) (22)
b. For Type B customers
T6 is the bottleneck for Type B customers.
The capacity for Type B customers is (60/22) = 2.73 customers
per hour.
The average capacity is 0.3(3.33) + 0.7(2.73) = 2.9 customers per
hour.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 12
Application 7.1
T3-a
(14)

T2 T3-b T4
(13) (10) (18)
Type A

T1 Type T3-c T7
(12) A or B? (11) (10)

Type B
T5 T6
(15) (22)

c. Type A customers would wait before steps T2 and T4 because


the activities immediately preceding them have a
higher rate of output.
Type B customers would wait before steps T5 and T6 for the
same reason. This assumes there are always new customers
entering the shop.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 13
Identifying the Bottleneck
Example 7.2
Diablo Electronics manufactures four unique products (A, B, C, and
D) that are fabricated and assembled in five different workstations
(V, W, X, Y, and Z) using a small batch process. Each workstation is
staffed by a worker who is dedicated to work a single shift per day
at an assigned workstation. Batch setup times have been reduced
to such an extent that they can be considered negligible. Figure
7.2 is a flowchart of the manufacturing process. Diablo can make
and sell up to the limit of its demand per week, and no penalties
are incurred for not being able to meet all the demand.

Which of the five workstations (V, W, X, Y, or Z) has the highest


utilization, and thus serves as the bottleneck for Diablo
Electronics?

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Identifying the Bottleneck - 7.2
Product A Finish with step
Step 1 at Step 2 at
$5 workstation V workstation Y 3 Product: A
Price:X $75/unit
at workstation
(30 min) (10 min) Demand: 60 units/wk
Raw materials (10 min)
$5 Purchased parts

Product B
Step 1 at Finish with step 2 Product: B
$3 workstation Y at workstation X Price: $72/unit
(10 min) (20 min) Demand: 80 units/wk
Raw materials
$2 Purchased parts
Product C Finish with step
$2 Step 1 at Step 2 at Step 3 at 4 Product: C
workstation W workstation Z workstation X at workstation Y Price: $45/unit
(5 min) (5 min) (5 min) (5 min) Demand: 80
Raw materials units/wk
$3 Purchased parts
Product D
Step 1 at Step 2 at Finish with step
$4 Product: D
workstation W workstation Z 3 Price: $38/unit
(15 min) (10 min) at workstation Y Demand: 100
Raw materials (5 min) units/wk
$6 Purchased parts

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Example 7.2
Identify the bottleneck by computing aggregate workloads
at each workstation.
The firm wants to satisfy as much of the product demand
in a week as it can.
Each week consists of 2,400 minutes of available
production time.
Multiplying the processing time at each station for a given
product with the number of units demanded per week
yields the workload represented by that product.
These loads are summed across all products going through
a workstation to arrive at the total load for the
workstation, which is then compared with the others and
the existing capacity of 2,400 minutes.
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Identifying the Bottleneck 7.2
Load from Load from Load from Load from Total Load
Workstation
Product A Product B Product C Product D (min)

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Identifying the Bottleneck 7.2
Load from Load from Load from Load from Total Load
Workstation
Product A Product B Product C Product D (min)

V 60 x 30 = 1800 0 0 0 1,800

W 0 0 80 x 5 = 400 100 x 15 = 1,500 1,900

X 60 10 = 600 80 x 20 = 1,600 80 x 5 = 400 0 2,600

Y 60 10 = 600 80 x 10 = 800 80 x 5 = 400 100 x 5 = 500 2,300

Z 0 0 80 x 5 = 400 100 x 10 = 1,000 1,400

These calculations show that workstation X is the


bottleneck, because the aggregate work load at X exceeds
the available capacity of 2,400 minutes per week.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 18
Application 7.2
ONeill Enterprises manufactures three unique products (A, B, C)
that are fabricated and assembled in four different workstations (W,
X, Y, Z) using a small batch process.
Each of the products visits every one of the four workstations,
though not necessarily in the same order.
Batch setup times are negligible.
ONeill can make and sell up to the limit of its demand per week,
and there are no penalties for not being able to meet all the
demand.
Each workstation is staffed by a worker dedicated to work on that
workstation alone, and is paid $12 per hour.
Variable overhead costs are $8000/week. The plant operates one 8-
hour shift per day, or 40 hours/week.
Which of the four workstations W, X, Y, or Z has the highest total
workload, and thus serves as the bottleneck for ONeill Enterprises?
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07 - 19
Application 7.2
Product A Flowchart for Products A, B, and C

Step 1 at Step 2 at Step 3 at Finish with step Product: A


$7 workstation W workstation Y workstation X 4 Price: $90/unit
(10 min) (15 min) (9 min) at workstation Z Demand:65 units
(16 min) /wk
Raw materials
$6 Purchased part
Product B
Step 1 at Step 2 at Step 3 at Finish with step
$9 workstation X workstation W workstation Y 4 Product: B
Price:
at workstation Z $85/unit
(12 min) (10 min) (10 min) Demand:70 units/
(13 min)
Raw materials wk
$5 Purchased part

Product C
Step 3 at Finish with step Product: C
Step 1 at Step 2 at 4 Price: $80/unit
$10 workstation W
workstation Y workstation X at workstation Z Demand: 80
(5 min) (10 min) (12 min)
(10 min) units/wk
Raw materials $5 Purchased part

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 20


Application Problem 7.2
SOLUTION
Identify the bottleneck by computing total workload at
each workstation. The firm wants to satisfy as much of
the product demand in a week as it can. Each week
consists of 2400 minutes of available production time.
Multiplying the processing time at each station for a given
product with the number of units demanded per week
yields the capacity load. These loads are summed across
all products going through that workstation and then
compared with the existing capacity of 2400 minutes.

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Application 7.2
Work Load from Load from Load from Total Load
Station Product A Product B Product C (minutes)

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Application 7.2
Work Load from Load from Load from Total Load
Station Product A Product B Product C (minutes)

W (65x10)=650 (70x10)=700 (80x12)=960 2310


X (65x9)=585 (70x12)=840 (80x10)=800 2225
Y (65x15)=975 (70x10)=700 (80x5)=400 2075
Z (65x16)=1040 (70x13)=910 (80x10)=800 2750

These calculations show that workstation Z is the bottleneck,


because the aggregate work load at Z exceeds the available
capacity of 2400 minutes per week.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 23


Determining the Product Mix
Example 7.3
The senior management at Diablo Electronics (see Example 7.2) wants
to improve profitability by accepting the right set of orders, and so
collected some additional financial data.
Variable overhead costs are $8,500 per week.
Each worker is paid $18 per hour and is paid for an entire week,
regardless of how much the worker is used.
Labor costs are fixed expenses.
The plant operates one 8-hour shift per day, or 40 hours each week.

Currently, decisions are made using the traditional method, which is to


accept as much of the highest contribution margin product as possible
(up to the limit of its demand), followed by the next highest
contribution margin product, and so on until no more capacity is
available.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07 - 24
Determining the Product Mix
Example 7.3
Pedro Rodriguez, the newly hired production supervisor, is
knowledgeable about the theory of constraints and
bottleneck-based scheduling. He believes that profitability
can indeed be improved if bottleneck resources were
exploited to determine the product mix.

What is the change in profits if, instead of the traditional


method used by Diablo Electronics, the bottleneck method
advocated by Pedro is used to select the product mix?

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07 - 25


Determining the Product Mix
Step 1: Calculate the contribution margin per unit of each
product as shown here.
A B C D
Price
Raw material and purchased parts
= Contribution margin

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 26


Determining the Product Mix
Step 1: Calculate the contribution margin per unit of each
product as shown here.
A B C D
Price $75.00 $72.00 $45.00 $38.00
Raw material and purchased parts 10.00 5.00 5.00 10.00
= Contribution margin $65.00 $67.00 $40.00 $28.00

When ordered from highest to lowest, the contribution


margin per unit sequence of these products is B, A, C, D.

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Determining the Product Mix
Step 2: Allocate resources V, W, X, Y, and Z to the products in the
order decided in step 1. Satisfy each demand until the
bottleneck resource (workstation X) is encountered.
Subtract minutes away from 2,400 minutes available for
each week at each stage.
Work Minutes at Minutes Left After Minutes Left After Can Only Can Only
Center the Start Making 80 B Making 60 A Make 40 C Make 100 D
V
W
X
Y
Z

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Determining the Product Mix
Step 2: Allocate resources V, W, X, Y, and Z to the products in the
order decided in step 1. Satisfy each demand until the
bottleneck resource (workstation X) is encountered.
Subtract minutes away from 2,400 minutes available for
each week at each stage.
Work Minutes at Minutes Left After Minutes Left After Can Only Can Only
Center the Start Making 80 B Making 60 A Make 40 C Make 100 D
V 600 600
2,400 2,400 600
W 2,400 2,400 2,200 700
2,400
X 2,400 800 200 0 0
Y 2,400 1,600 1,000 800 300
Z 2,400 2,400 2,400 2,200 1,200

The best product mix according to this traditional approach


is then 60 A, 80 B, 40 C, and 100 D.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 29
Determining the Product Mix
Step 3: Compute profitability for the selected product mix.

Profits

Revenue

Materials

Labor

Overhead

Profit

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Determining the Product Mix
Step 3: Compute profitability for the selected product mix.

Profits

Revenue (60 $75) + (80 $72) + (40 $45) + (100 $38) = $15,860

Materials (60 $10) + (80 $5) + (40 $5) + (100 $10) = $2,200

Labor (5 workers) (8 hours/day) (5 days/week) ($18/hour) = $3,600

Overhead = $8,500

Profit = $1,560

Manufacturing the product mix of 60 A, 80 B, 40 C, and


100 D will yield a profit of $1,560 per week.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 31


Determining the Product Mix
Decision Rule 2: Bottleneck Method

Select the best product mix according to the dollar


contribution margin per minute of processing time at the
bottleneck workstation X. This method would take advantage
of the principles outlined in the theory of constraints and get
the most dollar benefit from the bottleneck.

Step 1: Calculate the contribution margin/minute of


processing time at bottleneck workstation X:

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Determining the Product Mix
Product A Product B Product C Product D
Contribution margin
Time at bottleneck
Contribution margin per minute

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Determining the Product Mix
Product A Product B Product C Product D
Contribution margin $65.00 $67.00 $40.00 $28.00
Time at bottleneck 10 minutes 20 minutes 5 minutes 0 minutes
Contribution margin per minute $6.50 $3.35 $8.00 Not defined

When ordered from highest to lowest contribution margin/


minute at the bottleneck, the manufacturing sequence of
these products is D, C, A, B, which is reverse of the earlier
order. Product D is scheduled first because it does not
consume any resources at the bottleneck.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 34


Determining the Product Mix
Step 2: Allocate resources V, W, X, Y, and Z to the products in the
order decided in step 1. Satisfy each demand until the
bottleneck resource (workstation X) is encountered.
Subtract minutes away from 2,400 minutes available for
each week at each stage.
Work Minutes at Minutes Left After Minutes Left After Can Only Can Only
Center the Start Making 80 B Making 60 A Make 40 C Make 100 D

V
W
X
Y
Z

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 35


Determining the Product Mix
Step 2: Allocate resources V, W, X, Y, and Z to the products in the
order decided in step 1. Satisfy each demand until the
bottleneck resource (workstation X) is encountered.
Subtract minutes away from 2,400 minutes available for
each week at each stage.
Minutes Left Minutes Left
Work Minutes at Minutes Left After Can Only
After Making 80 After Making 60
Center the Start Making 100 D Make 70 B
C A
V 2,400 2,400 2,400 600 600
W 2,400 900 500 500 500
2,400 2,400 2,000 1,400 0
X
Y 2,400 1,900 1,500 900 200
Z 2,400 1,400 1,000 1,000 1,000

The best product mix according to this bottleneck based


approach is then 60 A, 70 B, 80 C, and 100 D.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 36
Determining the Product Mix
Step 3: Compute profitability for the selected product mix.
Profits

Revenue

Materials

Labor

Overhead

Profit

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 37


Determining the Product Mix
Step 3: Compute profitability for the selected product mix.
Profits

Revenue (60 $75) + (70 $72) + (80 $45) + (100 $38) = $16,940

Materials (60 $10) + (70 $5) + (80 $5) + (100 $10) = $2,350

Labor (5 workers) (8 hours/day) (5 days/week) ($18/hour) = $3,600

Overhead = $8,500

Profit = $2,490

Manufacturing the product mix of 60 A, 70 B, 80 C, and


100 D will yield a profit of $2,490 per week.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 38


Application 7.3
The senior management at ONeill Enterprises (see Application
7.2) wants to improve the profitability of the firm by accepting the
right set of orders.
Currently, decisions are made to accept as much of the highest
contribution margin product as possible (up to the limit of its
demand), followed by the next highest contribution margin
product, and so on until no more capacity is available.
Since the firm cannot satisfy all the demand, the product mix
must be chosen carefully.
Jane Hathaway, the newly hired production supervisor, is
knowledgeable about the theory of constraints and bottleneck
based scheduling. She believes that profitability can indeed be
approved if bottleneck resources were exploited to determine the
product mix. Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07 - 39
Application 7.3
SOLUTION
Decision rule 1: Traditional method - Select the best product mix
according to the highest overall profit margin of each product.

Step 1: Calculate the profit margin per unit of each product as


shown below
A B C
Price
Raw Material & Purchased Parts
Labor
= Contribution Profit Margin

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 40


Application 7.3
SOLUTION
Decision rule 1: Traditional method - Select the best product mix
according to the highest overall profit margin of each product.

Step 1: Calculate the profit margin per unit of each product as


shown below
A B C
Price $90.00 $85.00 $80.00
Raw Material & Purchased Parts 13.00 14.00 15.00
Labor 10.00 9.00 7.40
= Contribution Profit Margin $67.00 $62.00 $57.60

When ordering from highest to lowest, the profit margin per


unit order of these products is ABC.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 41
Application 7.3
Step 2: Allocate resources W, X, Y, and Z to the products in the
order decided in step 1. Satisfy each demand until the
bottleneck resource (workstation Z) is encountered.
Subtract minutes away from 2400 minutes available for
each week at each stage.

Work Center Starting After 65 A After 70 B Can Only Make 45 C


W
X
Y
Z

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 42


Application 7.3
Step 2: Allocate resources W, X, Y, and Z to the products in the
order decided in step 1. Satisfy each demand until the
bottleneck resource (workstation Z) is encountered.
Subtract minutes away from 2400 minutes available for
each week at each stage.

Work Center Starting After 65 A After 70 B Can Only Make 45 C


W 2400 1750 1050 510
X 2400 1815 975 525
Y 2400 1425 725 500
Z 2400 1360 450 0

The best product mix is 65 A, 70 B, and 45 C

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 43


Application 7.3
Step 3: Compute profitability for the selected product mix.

Profits
Revenue
Materials
Overhead
Labor
Profit

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Application 7.3
Step 3: Compute profitability for the selected product mix.

Profits
Revenue $15400
Materials $2500
Overhead $8000
Labor $1920
Profit $2980

Manufacturing the product mix of 65 A, 70 B, and 45 C will


yield a profit of $2980.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 45


Application 7.3
Decision rule 2: Bottleneck-based approach - Select the best
product mix according to the dollar contribution per minute of
processing time at the bottleneck workstation Z. This rule would
take advantage of the principles outlined in the theory of
constraints and get the most dollar benefit from the bottleneck.
Step 1: Calculate the contribution/minute of processing time at
bottleneck workstation Z:
Product A Product B Product C
Contribution Margin
Time at Bottleneck
Contribution Margin per minute

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 46


Application 7.3
Decision rule 2: Bottleneck-based approach - Select the best
product mix according to the dollar contribution per minute of
processing time at the bottleneck workstation Z. This rule would
take advantage of the principles outlined in the theory of
constraints and get the most dollar benefit from the bottleneck.
Step 1: Calculate the contribution/minute of processing time at
bottleneck workstation Z:
Product A Product B Product C
Contribution Margin $67.00 $62.00 $57.60
Time at Bottleneck 16 minutes 13 minutes 10 minutes
Contribution Margin per minute 4.19 4.77 5.76

When ordering from highest to lowest contribution margin/minute


at the bottleneck, the manufacturing sequence of these products is
CBA, which is reverse of the traditional method order.
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 47
Application 7.3
Step 2: Allocate resources W, X, Y, and Z to the products in the
order decided in step 1. Satisfy each demand until the
bottleneck resource (workstation Z) is encountered.
Subtract minutes away from 2400 minutes available for
each week at each stage.
Work Center Starting After 80 C After 70 B Can Only Make 43 A
W
X
Y
Z

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 48


Application 7.3
Step 2: Allocate resources W, X, Y, and Z to the products in the
order decided in step 1. Satisfy each demand until the
bottleneck resource (workstation Z) is encountered.
Subtract minutes away from 2400 minutes available for
each week at each stage.

Work Center Starting After 80 C After 70 B Can Only Make 43 A


W 2,400 1,440 740 310
X 2,400 1,600 760 373
Y 2,400 2,000 1300 655
Z 2,400 1,600 690 2

The best product mix is 43A, 70B, and 80C

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 49


Application 7.3
Step 3: Compute profitability for the selected product mix. The
new profitability figures are shown below based on the
new production quantities of 43A, 70B, and 80C.
Profits
Revenue
Materials
Overhead
Labor
Profit

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 50


Application 7.3
Step 3: Compute profitability for the selected product mix. The
new profitability figures are shown below based on the
new production quantities of 43A, 70B, and 80C.
Profits
Revenue $16220
Materials $2739
Overhead $8000
Labor $1920
Profit $3561

Manufacturing the product mix of 43 A, 70 B, and 80 C


will yield a profit of $3561.

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 51


Drum-Buffer-Rope Systems
Drum-Buffer-Rope
A planning and control
system that regulates
the flow of work-in-
process materials at the
bottleneck or the
capacity constrained
resource (CCR) in a
productive system.

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Drum-Buffer-Rope Systems
The bottleneck schedule is the drum because it
sets the beat or the production rate for the entire
plant and is linked to market demand
The buffer is the time buffer that plans early flows
into the bottleneck and thus protects it from
disruption
The rope represents the tying of material release
to the drum beat, which is the rate at which the
bottleneck controls the throughput of the entire
plant
07- 53
Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall.
Drum-Buffer-Rope Systems
Non-constraint Constraint CCR
Buffer (Bottleneck)
Material PROCESS A Time Buffer PROCESS B
Release Capacity Inventory Capacity
Schedule 800 800
units/wk units/wk

Rope Buffer Drum

Non-constraint Shipping
Buffer
PROCESS C Finished Goods
Inventory Shipping Market
Capacity Schedule Demand
700 units/wk 650 units/wk

Copyright 2013 Pearson Education, Inc. Publishing as Prentice Hall. 07- 54

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